Kongsberg Automotive (KOA) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw a significant turnaround in profitability, with EBIT rising to €12 million (6.2% margin) from a €2.9 million loss in Q2 2025, and net profit at €5.2 million compared to a €2 million loss year-over-year.

• Revenues increased for the third consecutive quarter, reaching €193.8 million, up 0.4% year-over-year and 7.9% sequentially, indicating improved market stability.

• Cash flow momentum continued, with Q2 net cash flow at €4.3 million, compared to €-0.9 million in Q2 2025.

• Strategic actions included manufacturing consolidation in China and restructuring in France to streamline operations and enhance efficiency.

• Commercial momentum improved, with €135 million in new contract awards on better terms and a stronger business pipeline.

Financial highlights

• EBIT improved by €14.9 million year-over-year, reaching €12 million (6.2% margin), driven by cost savings and lower warranty costs.

• Net profit was €5.2 million, compared to a €2 million loss year-over-year.

• Revenues were €193.8 million, up 0.4% year-over-year and 8% sequentially.

• Net cash flow improved to €4.3 million from €-0.9 million year-over-year.

• Return on capital employed rose to 10.2% from 0.5% year-over-year.

Outlook and guidance

• Underlying profitability is expected to continue improving through 2026, supported by operational improvements and cost reductions.

• Market conditions are cautiously positive, with strong truck orders in North America and positive trends in Europe, though geopolitical and trade risks persist.

• Focus remains on operational improvements, cost efficiency, and achieving a long-term EBIT target of 6.5%.